Crypto exchange Kraken plans to launch a new colocation service in the coming weeks that will offer clients ultra-low latency trading, the company said in a press release Monday.
The service is for customers who need high speed execution, Kraken said, and traders operating out of London can expect latency of under a millisecond.
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“Many exchanges offer colocation services, but Kraken’s approach is unique – we’re making it accessible to all partners and clients, not just institutions,” said Shannon Kurtas, head of exchange at Kraken, in the release.
Trading is all about speed, especially in volatile markets such as crypto, where a fraction of a second can make all the difference. Low latency services make use of sophisticated technology to give traders an edge by enabling them to execute orders in less than a millisecond.
“Colocation services in crypto are typically not widely accessible,” Kurtas said in emailed comments. “Kraken, however, has structured its offering to prioritize fairness and accessibility” and “our colocation service will be available to all clients, aligning with crypto’s core values of an open, fair, and transparent marketplace.”
“In addition to individuals and institutions who trade directly on Kraken, we also work with brokers, exchanges, and fintech companies that use our liquidity for their own products,” Kurtas said, and “these partners will also have access to colocation services once they become available.”
The exchange’s clients will have access to ultra-low latency trading from Kraken’s European data center by renting cloud compute from Beeks (BKS), a cloud computing and connectivity provider, that is listed in the U.K..
Select clients will be able to install physical hardware at Kraken’s data center, and access colocation services directly, the exchange said.
The crypto firm is considering launching an initial public offering (IPO) by the first quarter of 2026. The company believes the regulatory environment in the U.S. has sufficiently changed to make a public listing viable, Bloomberg reported earlier this month, citing people familiar with the matter.
Read more: SEC Plans to Drop Its Case Against Kraken, Firm Says